Charting Stocks

The Dow Jones Industrial Average breached the 10,000 level at the open and then rallied back 180 points from the low to close at 10,193. In a previous post I mentioned that the major averages were close to major support levels while approaching oversold levels. Those levels were tested today before the market moved higher.
(Chart [...]

After dropping 376 points yesterday, the Dow Jones Industrial Average is set to open down 95 points which would put it below the psychologically important 10,000 level. In my previous post, I mentioned that the ‘flash trade’ prices were real and we were heading for a retest of those lows. Currently, the major averages are [...]

Both the Dow Jones Industrial Average and S&P 500 Index are trading below their 200-day moving average.  NASDAQ bucked the trend bouncing back above it 200-day MA.
Many analysts in the technical community were unsure if the ‘flash trade’ lows were actual prices which should be included in their analysis, or merely a ‘machine’ blip which [...]

There have been a few bright spots in the current selloff. Short (Inverse) ETF’s, which move in the opposite direction of the underlying index, bottomed in April and have been rising since. Volatility, Treasuries and the US Dollar have also been moving higher. The Dollar, however, is overbought as discussed in this previous post.
Proshares Short [...]

The Dow Jones Industrial Average ended the last day of a volatile week down 162 points (-1.51%). While both the long and intermediate term outlook appear negative, the short term picture may improve in the coming days. It is important to note that the following is a 10 minute chart and so conclusions drawn must [...]

On Wednesday, I wrote about the troubling signal given by the Volatility Index (VIX) as it surged in a manner which resembled the 2008 crash.  Today we can add another market indicator to the “trouble” list – The US Dollar.
I’ve mentioned the inverse relationship between the US Dollar and stocks several times. This relationship began [...]

The Put/Call Ratio is widely used as a contrary indicator. Often times, during periods of rapid price change, the market reaches levels of extreme optimism and pessimism. One way of measuring the prevailing sentiment is by following the ratio of put to call options.
Investors buy put options when the believe a stock, or index, will [...]

The Volatility Index (VIX), also referred to as the “Fear indicator,” experienced its sharpest jump since the great crash of 2008. The move was enough to push this fear gauge above its 15-month downtrend (which is now broken). The VIX has an inverse relationship to stocks and so its no surprise to see a slight [...]

We’ve written about the relationship between US equities and the US dollar. Stocks bottomed in March and began to move up as the US Dollar topped during the same time and began to move down. Todays market selloff came as an oversold dollar (short term) found buyers.
If the dollar continues this advance, US equities should [...]

Much has been made over the recent stock market rally. The advance from the bottom has, indeed, been historic and has caught many of us by surprise. Though the market was extremely oversold and due for an upward correction, we continue to be  amazed at its strength and longevity.  A closer examination, however, reveals that [...]